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Social Protection Responses to Crises and their Impacts on Children: Learning from Past Lessons in
Indonesia and Ethiopia
Maricar Garde and Jenn Yablonski
The Global Economic Crisis - Including Children in the Policy Response
UNICEF-ODI9-10 November 2009'
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Outline of presentation
• Introduction
• Brief review of literature
• Case studies
– Description of programmes
– Problems
– Successes
• Lessons and insights from Indonesia and Ethiopia
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Introduction
• Policy essay looking at Indonesia and Ethiopia’s experience with social protection programmes (SP)
• SP programmes implemented under different contexts but a number of similar challenges/successes arise
• Indonesia’s crisis stemmed from the financial sector while Ethiopia suffered from chronic food shortage—features present in the current crisis
• The paper is not an impact analysis nor does it try to make generalisations
• Highlights insights that are relevant to the present crisis
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How do aggregate shocks affect households and children?
• Aggregate shocks tend to increase poverty and lead to a deterioration of social indicators in developing countries
• Impacts differ across households depending on wealth, geographic location, demographics and education
• Households resort to networks or
• Severe coping mechanisms (Ravallion, 2008):– Borrowing or selling-off productive assets
– Switching to a less expensive but lower quality diet
– Withdrawing children from school and at times putting them to work
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How do aggregate shocks affect households and children?
• Previous crises have led to:– Increased food insecurity (Studdert et. al., 2001)
– Maternal wasting in Indonesia (Block et. al., 2004)
– Reduced probability of school attendance in Argentina (Rucci, 2003)
– Increased incidence of child labour in Tanzania (Beegle et. al., 2006)
• Children may disproportionately suffer from irreversible consequence—malnutrition and missed years in school may alter children’s productivity and earnings during adulthood (Ravallion, 2008; Strauss and Thomas, 2008; Victora et al., 2008)
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Analysis of Social Protection Programmes:
Indonesia
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Indonesia: National Safety Net Programme (JPS)
• JPS introduced in 1998—without any institutional antecedent—as a response to the Asian Financial Crisis, five components are:
– Sale of subsidised rice (OPK)
– Employment creation programmes (Padat Karya)
– Scholarships and block grants
– Healthcare including nutrition supplement programme
– Community fund programme
• Funded by the national government, the Asian Development Bank and the World Bank
• Implemented by national agencies together with local and village authorities
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JPS: Challenges and successes
• Inadequate coverage of most programmes except for the rice subsidy scheme (OPK)
• Targeting mostly based on household income classification from previous surveys—missed those made vulnerable by the crisis
• Local-level intervention with the distribution of benefits improved targeting in some areas
• Households that participated in the OPK scheme reduced their probability of falling into poverty by 4% (Sumarto et. al., 2005)
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JPS: Impacts on Children
• Households which benefited from the OPK scheme and scholarships saw a 4 % and 10% rise (respectively) in consumption (Sumarto et. al., 2005)
• Scholarship programme reduced drop-out by 3 percentage points at the lower secondary school level which historically was the level most susceptible to drop-outs (Cameron, 2009)
• Beneficiaries of the nutrition programme (supplementary food programme) achieved better nutritional status than those who did not participate from the scheme (Satriawan, 2006)
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Analysis of Social Protection Programmes:
Ethiopia
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Ethiopia: Productive Safety Net Programme (PSNP)
• PSNP marked shift to systematic response to chronic food insecurity
• Two components: public works & direct support
• Aims to protect households from shocks: reduce food insecurity & asset depletion
• Households receive different combinations of food and/or cash over six-month period
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PSNP: Challenges and successes
• Initial problems related to targeting, timeliness of transfers, and amount of employment per household
• Challenges prevented participating households from improving their food security in 2006
• Modest improvements over time with repeated surveys in 2006 and 2008 showing that PSNP is protecting beneficiaries to some extent
• High rates of inflation affected the cash transfers—e.g. households in Amhara lost 56% of their purchasing power over 7 months
• Combination of inflation & different packages mean real value varies substantially between households/areas
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PSNP: Impacts on Children
• Households receiving cash were spending part of it on education (15% of hhs) and health (29%)
• Increased use of healthcare facilities, enrolment of children, and attendance attributed to the PSNP (Devereux et al., 2006; Slater et al. 2006)
• But labour requirements affect selection and participation in the programme—unintended impacts for some women and children
• Work requirement leads to increased children’s work at home in order to replace adult labour being used for PSNP (Slater et al. 2006, Woldehanna 2009)
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Learning from Indonesia’s JPS and
Ethiopia’s PSNP
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Lessons and Insights
• The nature of the shock affects both the social protection response of the government, and possibly the longer-term prospects for the programmes
• Ethiopia’s experience of periodic shocks led to the development of a more predicted and multi-year safety nets programme
• But certain factors such as donor dependence make the future if the PSNP unclear
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Lessons and Insights
• The JPS did not continue after Indonesia recovered
• Fuel subsidies were continued but later phased-out, and Indonesia tried a cash-transfer programme in 2006
• Poor coverage and targeting are often a problem but can be improved as the programme progresses Indonesia’s experience with using previous income classification highlights the need for real-time coverage during shocks> importance of investing in capacity (before crisis)
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Lessons and Insights
• SP design needs to be gender- and child-sensitive to minimise differential impacts among households members
• Programmes in Ethiopia and Indonesia did produce some positive results despite implementation challenges—the most obvious impact is protecting consumption during times of insecurity
• Social protection can prevent aggregate shocks from causing long-term consequences, e.g. children by protecting nutrition and preventing drop-outs
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Thank you for listening
Questions and comments are welcome